Australia: Environmental Law

Our monthly ESG bulletin provides a targeted snapshot of key developments we see as reflecting the “must know” trends in the Australian market and, where relevant, the international market.

Asia-Pacific data centre expansion is creating unprecedented insurance challenges as rapid infrastructure growth strains regional water and power resources. Could intensive resource consumption by data centres generate environmental liability claims from affected communities and regulators? And are traditional property insurance models adequately capturing the contingent business interruption risks created by concentrated digital infrastructure dependencies?

The UN Special Rapporteur on the Human Right to a Clean, Healthy, and Sustainable Environment has made history by intervening in Australian Federal Court proceedings challenging the extension of Woodside's North West Shelf gas project until 2070. The intervention raises critical questions about how international environmental law obligations should inform the interpretation of Australia's Environment Protection and Biodiversity Conservation Act, particularly regarding climate change impacts and heritage

The NSW Government has released a comprehensive data centre policy framework establishing new guidelines for electricity network connections, planning approvals, and environmental standards. These reforms require data centres to contribute to network infrastructure costs, procure renewable energy, and demonstrate demand flexibility while offering streamlined approval pathways for compliant projects.

Australia's Environment Protection and Biodiversity Conservation Act 1999 reforms continue to progress, with the commencement of further provisions and the introduction of four new National Environmental Standards.

The second tranche of NSW planning law reforms commenced on 21 March 2026 and are already changing how councils manage development assessment. This second tranche of reforms place emphasis on councils and consent authorities to provide timely determinations, identify issues with applications and to provide clear communication with applicants.

Treasury's latest consultation on Australia's Sustainable Investment Product Labelling regime introduces mandatory consumer-facing disclosures and asset-based thresholds for financial products marketed with sustainability claims. The proposed framework aims to combat greenwashing while providing retail investors with clearer information about the sustainability characteristics of their investments. Meanwhile, new gender equality targets take effect for large employers, and multiple statutory reviews are res

The NSW Government has proposed a new Climate Change and Natural Hazards State Environmental Planning Policy to consolidate climate change controls and strengthen climate risk assessment in development planning.

In the month since the commencement of the Iran war, the initial impacts on fuel prices have spread to materials and labour affected by either the rise in transport costs or the rise in the cost of oil as an input in the manufacturing process.